An entrepreneur organizing a new business needs to have a very clear idea of what the profit of the enterprise will be and what expenses it will incur, and, therefore, what should be its financial or commodity turnover. It is risky to start a business without this hypothetical information.
Instructions
Step 1
In order to plan the expected turnover of an enterprise, or, in other words, the estimated number of goods or services that can be sold, it is advisable to take into account the existing experience gained at similar (similar in profile) enterprises.
Step 2
After calculating the commodity or financial turnover for a certain period of time and determining what costs will arise to ensure this turnover, calculating the difference between the first and the second, you thereby designate the profit that the company will bring.
Step 3
For more detailed calculations, use the classic scheme: subtract the amount of funds required to purchase goods for this period from the estimated amount of the annual (monthly, quarterly - as it is convenient for you) turnover (this is usually 60-70%). Do not forget to also include in the list of regular expenses the payment of salaries to employees, rent for premises, transportation costs, insurance, communications (fax, telephone, etc.), depreciation and repair of equipment, payment of taxes, legal advice. The total resulting from all major deductions is the profit.
Step 4
If preliminary calculations show insufficient profit or the superiority of costs over turnover, it is necessary to take measures to reduce costs or find an additional source of income. The behavior of an advertising campaign can be recommended as a means to increase the company's income. As experience shows, the financial and commodity turnover after its implementation significantly exceeds the expenditure of funds spent on these purposes.
Step 5
The project should be abandoned if measures to reduce costs in the event of their prevalence over the turnover will be impossible for the enterprise.
